MURPHY OIL CORPMUR
MURPHY OIL CORP Debt Disclosure
Note F – Financing Arrangements and Debt
Long-term debt for the respective periods presented consisted of the following.
| December 31, | |||||||||||
| (Thousands of dollars) | 2025 | 2024 | |||||||||
| Notes payable | |||||||||||
5.875% notes, due December 2027 | $ | 78,899 | $ | 78,899 | |||||||
6.375% notes, due July 2028 | 148,590 | 148,590 | |||||||||
7.050% notes, due May 2029 | 117,582 | 117,582 | |||||||||
6.000% notes, due October 2032 | 600,000 | 600,000 | |||||||||
5.875% notes, due December 2042 ¹ | 339,761 | 339,761 | |||||||||
| Total notes payable | 1,284,832 | 1,284,832 | |||||||||
| Unamortized debt issuance cost and discount on notes payable | (12,406) | (14,336) | |||||||||
| Total notes payable, net of unamortized discount | 1,272,426 | 1,270,496 | |||||||||
| Finance lease obligations, due through November 2034 | 12,654 | 4,877 | |||||||||
| Total debt including current maturities | 1,285,080 | 1,275,373 | |||||||||
| Senior Unsecured Revolving Credit Facility | 100,000 | — | |||||||||
| Current maturities | (2,514) | (871) | |||||||||
| $ | 1,382,566 | $ | 1,274,502 | ||||||||
1 Coupon rate may fluctuate 25 basis points if rating is periodically downgraded or upgraded by S&P and Moody’s.
The amounts of long-term principal repayable over each of the next five years and thereafter are as follows: nil in 2026, $78.9 million in 2027, $148.6 million in 2028, $217.6 million in 2029, nil in 2030 and $939.8 million thereafter.
The Company also has a shelf registration statement on file with the SEC that permits the offer and sale of debt and/or equity securities through October 15, 2027.
Revolving Credit Facility
As of December 31, 2025, the Company had a $1.35 billion senior unsecured guaranteed RCF, with a maturity date of October 7, 2029. At December 31, 2025, the Company had $100.0 million outstanding borrowings under the RCF and $0.4 million of outstanding letters of credit, which reduced the borrowing capacity of the RCF. At December 31, 2025, the interest rate in effect on borrowings under the facility was 6.04%. At December 31, 2025, the Company was in compliance with all covenants related to the RCF. On the date the Company achieved certain credit ratings (Investment Grade Ratings Date), certain covenants would have been modified as set forth in the RCF. In addition, prior to Investment Grade Ratings Date, the Company would have been required to comply with a maximum consolidated leverage ratio of 3.25x and a minimum consolidated interest coverage ratio of 2.50x. From and after the Investment Grade Ratings Date, the Company will be required to comply with a maximum ratio of consolidated total debt to consolidated total capitalization of 60%. Borrowings under the RCF bore interest at rates based on either the “Alternate Base Rate”, the “Adjusted Term Secured Overnight Financing Rate (SOFR) Rate”, or the “Adjusted Daily Simple SOFR Rate”, respectively, plus the “Applicable Rate”. The “Alternate Base Rate” of interest was the highest of (a) the Wall Street Journal prime rate in effect on such day, (b) the New York Federal Reserve Bank Rate in effect on such day plus ½ of 1% and (c) the Adjusted Term SOFR Rate for a one month interest period as published two U.S. Government Securities Business Days prior to such day (or if such day is not a U.S. Government Securities Business Day, the immediately preceding U.S. Government Securities Business Day) plus 1%. The “Adjusted Term SOFR Rate” of interest was equal to (a) the Term SOFR Rate for such Interest Period, plus (b) 0.10%. The “Adjusted Daily Simple SOFR Rate” of interest was equal to (a) the Daily Simple SOFR, plus (b) 0.10%. The “Applicable Rate” of interest meant, for any day, the applicable rate per annum based upon the ratings of Moody’s Investors Service, Inc. and Standard and Poor’s Rating Services.
Subsequent Event - Revolving Credit Facility
On January 2, 2026, the Company entered into an amended credit agreement governing a $2.00 billion senior unsecured guaranteed revolving credit facility (Amended RCF), with a maturity date of January 2, 2031. The Amended RCF, which is effective January 2026, extends the borrowing term and increases the borrowing capacity of the previous RCF. All terms of the Amended RCF are substantially similar to the existing credit agreement, with an exception for the following: The “Adjusted Term SOFR Rate” of interest is equal to (a) the Term SOFR Rate for such Interest Period, plus (b) zero. The “Adjusted Daily Simple SOFR Rate” of interest is equal to (a) the Daily Simple SOFR, plus (b) zero. The “Applicable Rate” of interest means, for any day, the applicable rate per annum based upon the ratings of Moody’s Investors Service, Inc. and Standard and Poor’s Rating Services, respectively. The Company incurred $12.3 million in transaction costs and recorded the amount to “Deferred charges and other assets” in the Consolidated Balance Sheets, which is being amortized to interest expense over the term of the Amended RCF.
Debt Offering
On October 3, 2024, the Company closed the public offering of $600.0 million aggregate principal amount of senior notes that bear interest at a rate of 6.000% per annum and mature on October 1, 2032. The Company incurred transaction costs of $10.1 million on the issuance of these notes. The Company pays interest semi-annually on April 1 and October 1 of each year. The proceeds of the $600.0 million notes were used to fund the repurchase and repayment of debt during the fourth quarter of 2024 to achieve a debt-neutral transaction.
Subsequent Event - Debt Offering
On January 23, 2026, the Company closed a public offering of $500.0 million aggregate principal amount of its senior notes that bear interest at a rate of 6.500% per annum and mature on February 15, 2034. The Company has incurred transaction costs of $8.3 million on the issuance of these new notes. The Company will pay interest semi-annually on August 15 and February 15 of each year, beginning August 15, 2026. The proceeds of the $500.0 million notes were used to fund the repurchase and repayment of debt and related fees, as well as for general corporate purposes.
Debt Extinguishment
In December 2024, the Company redeemed $79.0 million of the 2027 Notes. The total cost of the debt extinguishment of $1.2 million, consisting of cash costs of $0.8 million and non-cash costs of $0.4 million, is included in “Interest expense, net” on the Consolidated Statements of Operations for the year ended December 31, 2024.
In October 2024, the Company tendered an aggregate $521.1 million of its notes, comprised of: $258.8 million of the 2027 Notes, $200.2 million of the 2028 Notes and $62.1 million of the 2029 Notes. The total cost of the debt extinguishment of $18.2 million, consisting of cash costs of $14.9 million and non-cash costs of $3.3 million, is included in “Interest expense, net” on the Consolidated Statements of Operations for the year ended December 31, 2024.
In May 2024, the Company paid a total of $50.5 million to complete the open market repurchases of $26.5 million aggregate principal of its 2027 Notes and $23.5 million aggregate principal of its 2028 Notes. The total cost of debt extinguishment of $0.9 million, consisting of cash costs of $0.5 million and non-cash costs of $0.4 million, is included in “Interest expense, net” on the Consolidated Statements of Operations for the year ended December 31, 2024.
Subsequent Event - Debt Extinguishment
On January 23, 2026, the Company redeemed the remaining $78.9 million principal amount outstanding of its 2027 Notes and $148.6 million of its 2028 Notes, for an aggregate $227.5 million. The total cost of the debt extinguishment of $3.5 million consisted of cash costs of $2.5 million and non-cash costs of $1.0 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2017 | Feb 26, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 26, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.